Micheál Martin (Cork South Central, Fianna Fail) | Oireachtas source

I thank the Minister for his attendance. Throughout Cork city, the county and the region there is great concern about the situation pertaining to Cork Airport. The recent announcement by Aer Lingus Regional is a further blow to the situation at the airport. There has been a serious decline in the number of flights to and from Cork. Obviously, this will have a negative impact on the tourism industry and the economic and industrial future for the region.

In recent years, Cork Airport's traffic or passenger numbers have fallen by approximately 40%, which is rather dramatic. Last year alone saw a reduction of 6.6% in passengers to the airport. Next year, the airport authority is projecting a 5% decline. Action is required because 2015 will be worse. Aer Lingus and Ryanair have announced the cancellation of routes on top of a reduction of further flights to continental Europe, including the ending of the Cork to Lisbon, Cork to Nice and Cork to Brussels routes.

Passenger numbers are now at 2 million. We cannot blame it exclusively on the downturn and we cannot blame it on the motorway or the associated improvements, as some do - I understand the Minister's suggested this recently. Shannon Airport passenger numbers have gone up 18.7% and those in Dublin have gone up by 6.5%. I believe we can trace this back to the decision in 2012. I am certain Cork Airport is not operating on a level playing pitch.

The reconstitution of Shannon Airport under a separate State company with Shannon Development and the rental revenues that flow from Shannon Development have put Shannon in a strong competitive position. Good luck to Shannon in that regard. Its debt burden has also been written off to the tune of €100 million. Essentially, it is in a position to offer far better prices to airlines than Cork Airport. This is not something I am saying; officials of the Dublin Airport Authority are saying it. In fact, one thing that concerned me when I met DAA officials was that they were reluctant to go public because they were fearful of the political repercussions. The DAA seems to have been rather muted until relatively recently on this issue.

Certain legislation was brought in at the time. The Government abolished the Cork Airport Authority, although the legislation allows for it to be re-established. Essentially, it is part of the DAA structure now. It is clear that Cork Airport lacks a strong independent advocate and is very much subservient to the DAA's diktat.

In the context of the Booz report and the legislation, Cork Airport was never really given any new lease of life by the Government and it is at a severe disadvantage now. The Government directly intervened elsewhere. I have no doubt the Minister for Finance, Deputy Noonan, was influential in terms of the Shannon situation. Shannon Airport can offer deals to Ryanair that Cork Airport cannot. That is fine except it does not add any value to the country. That is the bottom line. Approximately 100,000 passengers were going through Cork and they are now going to Shannon because of the deals that can be offered. That is what DAA officials are saying behind the scenes. They are clear and straightforward about it.

Therefore, the pitch must be levelled somehow in terms of facilitating growth in Cork. There is no way that the airport can prevent the diversion of services as a result of the incentive pricing that is going on. In particular, Ryanair, as a low-cost airline, has diverted a good deal of its traffic to the airport down the road. There is no doubt that substantial discounts, success fees and marketing payments are all factors in that change. I believe it is a race-to-the-bottom model and one the Government should reflect on and change tack in terms of ensuring a feasible long-term future for Cork Airport.

One step I recommend to the Minister is for the Cork Airport board to be re-established. At least that would allow for a strong board that could advocate for Cork Airport, in particular. That would mitigate the sense, which is now very strong in the region, that certain issues are being muted because of the DAA's relationship with the Department and its political masters, that DAA officials are not allowed to raise awkward questions and that they do not want to publicly articulate awkward questions.

A route development fund is essential for Cork Airport, or else a regional support fund for tourism activities in the region. Something has to happen to redress the current imbalance between the three airports. Route development funds have been successful in the past in developing regional airports and increasing connectivity elsewhere, including Scotland, Northern Ireland, Wales and northern England. The Government should seriously consider ways and means of redressing this otherwise the situation will continue to decline. It is not sustainable in the current framework that operates throughout the three State airports. A route development fund and an independent authority should be considered.

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